US news sources have reported that casino and leisure mogul Tilman Fertitta, seeks to merge his Golden Nugget Casinos corporation with Caesars Entertainment.
Fertitta the owner of NBA franchise the Houston Rockets, operates Golden Nugget Casinos through his privately owned leisure and hospitality group Landry’s Inc.
Early news reports by CNBC Business and Reuters detail that Fertitta has approached Caesars governance with $13 per share cash-and-stock offer.
In the pursuit of a Caesars-Golden Nugget merger, Fertitta will have to convince, private equity firms Apollo Global and TPG Capital to merge Caesars, an investment they have supported through Chapter 11 bankruptcy reforms.
Reacting to the breaking news, US business insiders have cast doubts on whether Caesars will entertain Fertitta’s ambitious merger offer. The Nasdaq gambling operator is the bigger firm, with a current market capitalisation of circa $6.5 billion and operating 49 casinos worldwide, whilst Golden Nugget maintains 5 US properties.
Furthermore, in previous communications, Mark Frissora President & CEO of Caesars Entertainment has stated that governance will prioritise revamping its US home market properties alongside expanding the Caesars business and brand internationally.